Commerzbank

Russia has taken its first step toward regaining access to international capital markets with a successful new issue for Alfa Bank’s holding company this week, writes Francesca Young.

BBVA returned to the covered bond market for the first time in more than a year on Wednesday with a 10 year Cédulas that attracted 115 investors into the book. The coupon paid was the lowest ever for a 10 year in the history of the Spanish market.

Panamanian lender Global Bank is set to become the second financial from the country to tap the Swiss franc market on Tuesday, looking to appeal to Swiss retail investors with a juicy coupon for a modestly sized deal.

ABH Financial Limited has mandated Alfa Bank, Commerzbank and UBS to arrange a euro denominated Reg S senior unsecured bond, but bankers away from the note disagreed on whether the deal, which will be sub-benchmark size, will serve as a market reopener for Russian issuers.

Rating: Aaa/AA+/AAA

Two corporate bonds were issued in Europe on Tuesday and, unusually, both were 12 year euro bonds from single-A issuers – French property company Unibail-Rodamco and Energie Baden-Württemberg, the German power generator. Both were also priced at 72bp over mid-swaps.

Austria took advantage of a clear week of issuance to bring an unusual dual tranche issue that included a six year floating rate note. Strong demand for the 10-year should encourage issuers looking at printing euro benchmarks in the coming weeks.

Air Liquide, the French industrial gases group, is about as unchallenging a credit as they come in the European market. On Wednesday it raised €500m with a very straightforward, 10 year no-grow bond.

Hochtief, the unrated German construction company that is 59% owned by Actividades de Construcción y Servicios of Spain, returned to the bond market on Thursday with a €500m deal that was boosted by heavy buying from private banks.

Commerzbank’s Andrew Nicola was exhausted on Thursday morning, but not because he was hungover from the GlobalCapital Awards — unlike several members of the MTN world. No, it was because he and his wife have an interesting way of preparing for a new child: home improvement.

Kutxabank opened books for a €1bn seven year Cédulas Hipotecarias on Monday, Spain’s fourth covered bond of this year. The issuer priced the deal through its curve even as Spanish government bonds underperformed.

Several companies delayed plans to issue corporate bonds in Europe today, as markets looked ugly at the open. There has been a flurry of MTN and niche currency issuance this week, but the only mainstream corporate bond issue today was from Prologis, the US warehouse Reit.